The ICF lends €14 million to Leitat, easing its survival.

BarcelonaPage 8 of the Government agreements of April 1st includes one of the most anticipated news items of the last year at the Leitat technology center. The organization, which employs 500 workers, learned this Tuesday that the Catalan Institute of Finance (ICF) has guaranteed it up to 14 million euros in financing "to contribute to the maintenance of its activity."

This decision adopted by the executive council was essential to make it possible for the Terrassa technology center to emerge from the serious financial crisis that became known in March of last year. As ARA reported earlier this year, Leitat's continued operations depended on this injection from the ICF, as it was the condition set by the banks for obtaining a syndicated loan essential to safeguard the center's viability. Financial sources contacted by ARA suggest that with the announcement of this financing of up to 14 million, the only thing missing would be the banks' commitment to lend around seven million.

Leitat's financial hole raised concerns for its survival in the spring of 2024. The previous management, led by former executive vice president Joan Parra, had losses of 16 million in 2023 and 27 million in the last three years, according to adue diligencecommissioned by PwC. The center's president at the time was Jordi William Carnes, who, according to sources familiar with the institution's day-to-day operations, was unaware of the details of its management.

Salvation Plan

The new management, headed by Jordi Cabrafiga, has faced the difficult task of turning this situation around over the past 12 months. Leitat had to implement painful redundancies for 114 of its 600 employees and has already received a €9 million injection from the Generalitat (Catalan Government). The €14 million announced by the ICF (Spanish Institute of Finance) should be used by CaixaBank, Banco Sabadell, Banco Santander, and BBVA to agree on a joint loan that definitively guarantees the technological institution's survival. In its announcement, the Government emphasizes that Leitat is a leading center in Europe despite being one of the oldest on the continent, having been founded in 1906.

In various quarters, it was assumed that Parra's management would end up in court; however, this has not happened.